Shares of a Housing Finance Company registered with National Housing Bank slumped by 2.4 percent on BSE to hit a low of Rs. 775 on Tuesday, after around 3.43 crore shares of the bank exchanged hands on the BSE, bringing the total deal value to nearly Rs. 2,654.6 crore.
At 02:31 p.m., the shares of PNB Housing Finance Limited were trading in the red at Rs. 779.7, down by 1.8 percent, compared to its previous closing price of Rs. 794.2, with a market cap of Rs. 20,251 crores.
What’s the News:
On the BSE, around 3.43 crore shares of PNB Housing Finance exchanged hands, bringing the total deal value to nearly Rs. 2,654.6 crore.
Reports suggest that Quality Investment Holdings PCC, a US-based private equity firm Carlyle Group’s affiliate, is likely to be the seller to offload a 12.8 percent stake in the housing finance company.
According to CNBC, Carlyle Group increased the block deal size to a 12.8 percent stake from the initial offer size of 6.4 percent, with an aim to earn Rs. 2,511 crores compared to the earlier Rs. 1,256 crore.
The block deal’s floor price is anticipated to be Rs. 755 per share, reflecting a 5 percent discount from the previous closing price of Rs. 794.2.
As of June 2024, Carlyle Group, through Quality Investment Holdings PCC, held approximately 8.48 crore equity shares, representing a 32.68 percent stake in PNB Housing Finance, according to BSE shareholding data.
Financials:
The bank experienced significant growth in its total income, showing a year-on-year rise of nearly 6.8 percent from Rs. 1,707.6 crore in Q1 FY23-24 to Rs. 1,823 crore in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 347.3 crore to Rs. 433 crore, indicating a growth of around 25 percent YoY.
Net Interest Income (NII) grew by 4 percent YoY and 3 percent QoQ to Rs. 651 crore, while the bank’s Net Interest Margin (NIM) stood at 3.65 percent in Q1 FY24-25 as compared to 3.86 percent in Q1 FY23-24.
Stock performance:
The stock has delivered nearly positive returns of nearly 23.2 percent in one year as well as around 2.4 percent returns in the last six months. However, so far in 2024, the shares of PNB Housing Finance have given negative returns of about 0.6 percent.
About the company:
Incorporated in 1988, PNB Housing Finance Limited is primarily engaged in the business of providing loans to individuals and corporate bodies for the purchase, construction, repair and up-gradation of houses.
It is a deposit-taking Housing Finance Company registered with the National Housing Bank (NHB) that also provides loans for commercial space, loans against property and loans for the purchase of residential plots.
Written by Shivani Singh
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